industrial legislations

1. MODULE-2
LABOUR LEGISLATIONS
IN INDIA

2. • Labour legislation:-
The term ‘Labour Legislation’ is used to cover all the laws
which have been enacted by the government to deal with
employment and non- employment, wages, working
conditions, industrial relations, social security and welfare
of persons employed in industries.
According to Mr. V.V. Giri Labour Legislation is “ A
Provision for equitable distribution of profits and benefits
emerging from industry, between industrialists and workers
and affording protection to the workers against harmful
effects to their health, safety and morality.”
Thus labour legislation refers to all laws of the
government to provide social and economic security to the
workers.
These acts are aimed at reduction of production losses
due to industrials disputes and to ensure timely payment of
wages and other minimum amenities to workers.

3. Principles of labour legislations
1) Social justice
2) Social equality
3) Social welfare
4) Social security
5) National economy
6) International uniformity

4. Nature of Labour Legislation
Products of industrial revolution
Regards individuals as a worker
Deals with problems of labour
It is role – relation
Regulates conditions of labour

5. 1) Products of industrial revolution:-
• The labour legislations are the products of industrial
revolution and they have come in to being to take care of
errors created by it due to specific circumstances.
• They are different from legislations.
• Therefore they are specific and not general in philosophy,
concept and even in practice.
2) Regards individuals as a worker:-
• Labour legislation regards the individual as a worker, whereas
social legislation consider him primarily as a citizen.
• Workers being the weaker class of the society, suffer at the
hands of the employers. Therefore these set of legislations
are aimed at protecting and securing justice to them.

6. 3) Deals with problems of labour:-
• Labour legislations seek to deal with the problems
arising out of the occupational status of individuals.
• Problems related with hours of work, wages, working
conditions, trade unionism, industrial relations are the
main subject matter of labour legislations.
4) It is role – relation:
• Individuals have different roles to perform and
different laws are designed for regulation the different
roles.
• It is the role- relation that determines whether a
particular legislation falls under the category of labour
legislation, social legislation or general legislation.

7. 5) Regulates conditions of Labour:-
• Labour Legislations are aimed at regulating
the conditions of labour, hence they are
required to be revised more frequently as
compare to general legislations.
• Unless Labour Legislations are subjected to
frequent revision and left to continue as
they are, they become absolute and
irrelevant.

8. Objectives of Labour Legislations
 To protect the workers from profit seeking employers
 To ensure that the service conditions should be clearly spelt
out by the employer to the employee
 To improve and regulate the conditions of workers
employed in different industries and establishments
 To ensure that the employees are paid their wages on fixed
dates and there should be no illegal deductions made from
the wages
 To promote industrial peace and industrial relations
 To preserve the health, safety and welfare of the workers
 To protect the interest of women and young persons
working in the factories.
 To maintain the dignity of employees in their organizations

9. Need for labour legislation
Weak labour organizations
Occupational insecurity
Hazardous working conditions
Law and order
Achieving socio- economic progress

10. • The need of labour legislation becomes important because of
following reasons
1) Weak labour organizations:-
Individual worker is economically very weak and is unable to
bargain the terms with the employers. Even the labour
organizations are relatively weak due to various reasons and in
most cases they depend merely on the mercy of employers. Now
as the payment of wages, layoff, dismissal, retrenchments, etc. are
all governed by the legislations, insecurity of workers is removed
to great extent.
2) Occupational insecurity:-
The workers in many organization did not get any compensations
in case of accidents, deaths etc. As a result the worker faced
occupational insecurity. Now benefits such as occupational act,
employee state insurance Act etc. have been statutorily given to
the employee.

11. 3) Hazardous working conditions:-
Workers health and safety is always in danger due to
harmful working conditions in some factories. The factories
act, contains the number of provisions relating to health
and safety of workers.
4) Law and Order:-
Labour Legislation is also necessary in order to maintain
law and order situation in and outside the industries.
5) Achieving socio- economic progress:-
Labour Legislation is one of the most progressive and
dynamic instrument for achieving socio-economic progress

12. Importance of labour legislations
 Improves industrial relations
 Minimizes industrial disputes
 Protects workers from exploitation
 Ensures job security for workers
 Promotes healthy work environment
 Regulates working hours, rest intervals etc.
 Provides welfare and social security measures
 Prohibits exploitation and gender discrimination
 Reduces conflicts and strikes etc.
 Minimizes labour unrest
 Helps workers in getting fair wages.

13. Impact of ILO
• Labour class is indeed one of the classes most vulnerable to exploitation. Most
of the labor legislation in India are pre constitutional.
• The Credit of various Labour Legislations must be attributed to the ILO as the
guideline issued by the ILO formed the principles on which these legislations
were drawn.
• The ILO did have great impact on the labour laws in India.
• Many new labour laws were enacted as per the different conventions of the
ILO.
• The setting of ILO also saw the amendments of different acts.
• The positive influence of ILO was seen in the form of recognition of many new
kinds of rights that were not available earlier to the labour class.
• The impact of ILO can be seen in the following fields:-
• Labour Legislations- until 1919 there were no important Labour Legislation in
India. But with the establishment of ILO coupled with trade union pressure in
the country has greatly influenced Labour Legislation in India.

14. • With the growth and
expansion of the factories
and industries new avenues
for employment were
created, resulting in to
gradual migration of labour
force from rural areas to
urban areas.
• In the absence of any state
controll or organization of
the workers, the employers
were less concerned about
the needs of the employees
and their problems.
• The wages were much below
the subsistence (survival)
level and the working
conditions were
unsatisfactory.
• This situation laid to the
enactment of number of
legislations beginning from the
year 1881. these include the
factories act 1881, workman's
compensation acts 1923, trade
unions act 1926, the payment
of wages act 1936, the
maternity benefit act 1939
and so on.
• The factories act 1881 is the
basis of all labour and
industrial laws of the country.
These act was amended, and
provisions for health, safety
and welfare of the workers
were made.

15. Labour Policy of India
• Labour policy in India has been evolving in response
to specific needs of the situation to suit
requirements of planned economic development and
social justice and has two fold objectives, namely
maintaining industrial peace and promoting the
welfare of labour.

16. Labour Policy Highlights:-
• Creative measures to attract public and private investment.
• Creating new jobs
• New Social security schemes for workers in the unorganized
sector.
• Social security cards for workers.
• Unified and beneficial management of funds of Welfare
Boards.
• Reprioritization of allocation of funds to benefit vulnerable
workers.
• Model employee-employer relationships.
• Long term settlements based on productivity.
• Vital industries and establishments declared as `public
utilities`.
• Special conciliation mechanism for projects with investments
of Rs.150 crores or more.
• Industrial Relations committees in more sectors.

17. Labour Policy Highlights continued:-
• Labour Law reforms in tune with the times. Empowered body of
experts to suggest required changes.
• Statutory amendments for expediting and streamlining the
mechanism of Labour Judiciary.
• Amendments to Industrial Disputes Act in tune with the times.
• Efficient functioning of Labour Department.
• More labour sectors under Minimum Wages Act.
• Child labour act to be aggressively enforced.
• Modern medical facilities for workers.
• Rehabilitation packages for displaced workers.
• Restructuring in functioning of employment exchanges.
Computerization and updating of
• data base.
• Revamping of curriculum and course content in industrial training.
• Joint cell of labour department and industries department to study
changes in laws and rules.

18. LABOUR LAWS IN INDIA
• The term ‘labour’ means productive work
especially physical work done for wages. Labour
law also known as employment law is the body of
laws, administrative rulings, and precedents which
address the legal rights of, and restrictions on,
working people and their organizations.
• The prevailing social and economic conditions have
been largely influential in shaping the Indian labour
legislation, which regulate various aspects of work
such as the number of hours of work, wages, social
security and facilities provided.

19. • The labour laws of independent India derive their
origin, inspiration and strength partly from the views
expressed by important nationalist leaders during the
days of national freedom struggle, partly from the
debates of the Constituent Assembly and partly from
the provisions of the Constitution and the
International Conventions and Recommendations.
• The relevance of the dignity of human labour and the
need for protecting and safeguarding the interest of
labour as human beings has been enshrined in
Chapter-III (Articles 16, 19, 23 & 24) and Chapter IV
(Articles 39, 41, 42, 43, 43A & 54) of the Constitution
of India keeping in line with Fundamental Rights and
Directive Principles of State Policy.
• The Labour Laws were also influenced by important
human rights and the conventions and standards that
have emerged from the United Nations. These
include right to work of one’s choice, right against
discrimination, prohibition of child labour, just and
humane conditions of work, social security,
protection of wages, redress of grievances, right to
organize and form trade unions, collective bargaining
and participation in management
Article 38: State to secure a social order for
the promotion of the welfare of the people
Article 39: Certain principles of policy to be
followed by the State
Article 39A: Equal justice and free legal aid
Article 40: Organisation of village
panchayats
Article 41: Right to work, education, and
public assistance in certain cases
Article 42: Provision for just and humane
conditions of work and maternity relief
Article 43: Living wage, etc., for workers
Article 43A: Participation of workers in the
management of industries

20. • Under the Constitution of India, Labour is a subject in the
concurrent list where both the Central and State Governments
are competent to enact legislations.
• As a result , a large number of labour laws have been enacted
catering to different aspects of labour namely, occupational
health, safety, employment, training of apprentices, fixation,
review and revision of minimum wages, mode of payment of
wages, payment of compensation to workmen who suffer
injuries as a result of accidents or causing death or disablement,
bonded labour, contract labour, women labour and child labour,
resolution and adjudication of industrial disputes, provision of
social security such as provident fund, employees’ state
insurance, gratuity, provision for payment of bonus, regulating
the working conditions of certain specific categories of workmen
such as plantation labour, beedi workers etc.

21. The legislations can be categorized as follows:
1. Labour laws enacted by the Central Government,
where the Central Government has the sole
responsibility for enforcement.
2. Labour laws enacted by Central Government and
enforced both by Central and State Governments.
3. Labour laws enacted by Central Government and
enforced by the State Governments.
4. Labour laws enacted and enforced by the various
State Governments which apply to respective
States.

22. Labour laws enacted by the Central Government, where the Central
Government has the sole responsibility for enforcement
1. The Employees’ State Insurance Act, 1948
2. The Employees’ Provident Fund and Miscellaneous Provisions Act,1952
3. The Dock Workers (Safety, Health and Welfare) Act, 1986
4. The Mines Act, 1952
5. The Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour
Welfare (Cess) Act, 1976
6. The Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labor
Welfare Fund Act, 1976
7. The Mica Mines Labour Welfare Fund Act, 1946
8. The Beedi Workers Welfare Cess Act, 1976
9. The Limestone and Dolomite Mines Labour Welfare Fund Act, 1972
10. The Cine Workers Welfare (Cess) Act, 1981
11. The Beedi Workers Welfare Fund Act, 1976
12. The Cine Workers Welfare Fund Act, 1981

23. Labour laws enacted by Central Government and enforced both by
Central and State Governments
1. The Child Labour (Prohibition and Regulation) Act, 1986.
2. The Building and Other Constructions Workers’ (Regulation of
Employment and Conditions of Service) Act, 1996.
3. The Contract Labour (Regulation and Abolition) Act, 1970.
4. The Equal Remuneration Act, 1976.
5. The Industrial Disputes Act, 1947.
6. The Industrial Employment (Standing Orders) Act, 1946.
7. The Inter-State Migrant Workmen (Regulation of Employment and
Conditions of Service)Act, 1979.
8. The Labour Laws (Exemption from Furnishing Returns and
Maintaining Registers by Certain Establishments) Act, 1988
9. The Maternity Benefit Act, 1961
10. The Minimum Wages Act, 1948

24. Cont..
1. The Payment of Bonus Act, 1965
2. The Payment of Gratuity Act, 1972
3. The Payment of Wages Act, 1936
4. The Cine Workers and Cinema Theatre Workers (Regulation of
Employment) Act, 1981
5. The Building and Other Construction Workers Cess Act, 1996
6. The Apprentices Act, 1961
7. Unorganized Workers Social Security Act, 2008
8. Working Journalists (Fixation of Rates of Wages Act, 1958
9. Merchant Shipping Act, 1958
10. Sales Promotion Employees Act, 1976
11. Dangerous Machines (Regulation) Act, 1983
12. Dock Workers (Regulation of Employment) Act, 1948
13. Dock Workers (Regulation of Employment) (Inapplicability to
Major Ports) Act, 1997
14. Private Security Agencies (Regulation) Act, 2005

25. Labour laws enacted by Central Government and enforced by the State
Governments
1. The Employers’ Liability Act, 1938
2. The Factories Act, 1948
3. The Motor Transport Workers Act, 1961
4. The Personal Injuries (Compensation Insurance) Act, 1963
5. The Personal Injuries (Emergency Provisions) Act, 1962
6. The Plantation Labour Act, 1951
7. The Sales Promotion Employees (Conditions of Service) Act, 1976
8. The Trade Unions Act, 1926
9. The Weekly Holidays Act, 1942
10. The Working Journalists and Other Newspapers Employees (Conditions of Service)
and
11. Miscellaneous Provisions Act, 1955
12. The Workmen’s Compensation Act, 1923
13. The Employment Exchange (Compulsory Notification of Vacancies) Act, 1959
14. The Children (Pledging of Labour) Act 1938
15. The Bonded Labour System (Abolition) Act, 1976
16. The Beedi and Cigar Workers (Conditions of Employment) Act, 1966

26. 3. Classification of LABOUR LAWS in India
Labour Laws may be classified under the following heads:
• II. Laws related to
Wages such as:
• 4. Payment of Wages
Act, 1936
• 5. Minimum Wages Act,
1948
• 6. Payment of Bonus
Act, 1965.
• 7. Working Journalists
(Fixation of Rates of
Wages Act, 1958
• I. Laws related to
Industrial Relations
such as:
• 1. Trade Unions Act,
1926
• 2. Industrial
Employment
Standing Order Act,
1946.
• 3. Industrial Disputes
Act, 1947.

27. III. Laws related to Working Hours, Conditions of Service and
Employment such as:
• 8. Factories Act, 1948.
• 9. Plantation Labour Act, 1951.
• 10. Mines Act, 1952.
• 11. Working Journalists and other Newspaper Employees’
(Conditions of Service and Misc. Provisions) Act, 1955.
• 12. Merchant Shipping Act, 1958.
• 13. Motor Transport Workers Act, 1961. 28
• 14. Beedi & Cigar Workers (Conditions of Employment) Act,
1966.
• 15. Contract Labour (Regulation & Abolition) Act, 1970.
• 16. Sales Promotion Employees Act, 1976.
• 17. Inter-State Migrant Workmen (Regulation of
Employment and Conditions of Service) Act, 1979.

28. III. Laws related to Working Hours, Conditions of Service and
Employment such as:
• 18. Dock Workers (Safety, Health & Welfare) Act, 1986.
• 19. Building & Other Construction Workers (Regulation of Employment &
Conditions of Service) Act, 1996.
• 20. Building and Other Construction Workers Welfare Cess Act, 1996
• 21. Cine-Workers and Cinema Theatre Workers (Regulation of
Employment) Act, 1981
• 22. Dangerous Machines (Regulation) Act, 1983
• 23. Dock Workers (Regulation of Employment) Act, 1948
• 24. Dock Workers (Regulation of Employment) (Inapplicability to Major
Ports) Act, 1997
• 25. Employment of Manual Scavengers and Construction of Dry Latrines
(Prohibition) Act, 1993
• 26. Industrial Employment (Standing Orders) Act, 1946
• 27. Mines and Mineral (Development and Regulation Act, 1957
• 28. Plantation Labour Act, 1951 29. Private Security Agencies (Regulation)
Act, 2005

29. • IV. Laws related to Equality and Empowerment of
Women such as:
• 30. Maternity Benefit Act, 1961
• 31. Equal Remuneration Act, 1976.
• V. Laws related to Deprived and Disadvantaged
Sections of the Society such as:
• 32. Bonded Labour System (Abolition) Act, 1976
• 33. Child Labour (Prohibition & Regulation) Act,
1986
• 34. Children (Pledging of Labour) Act, 1933

30. VI. Laws related to Social Security such as:
• 35. Workmen’s Compensation Act, 1923.
• 36. Employees’ State Insurance Act, 1948.
• 37. Employees’ Provident Fund & Miscellaneous Provisions Act, 1952.
• 38. Payment of Gratuity Act, 1972.
• 39. Employers’ Liability Act, 1938
• 40. Beedi Workers Welfare Cess Act, 1976
• 41. Beedi Workers Welfare Fund Act, 1976
• 42. Cine workers Welfare Cess Act, 1981
• 43. Cine Workers Welfare Fund Act, 1981
• 44. Fatal Accidents Act, 1855
• 45. Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour
Welfare Cess Act, 1976
• 46. Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour
Welfare Fund Act, 1976
• 47. Limestone and Dolomite Mines Labour Welfare Fund Act, 1972
• 48. Mica Mines Labour Welfare Fund Act, 1946 29
• 49. Personal Injuries (Compensation Insurance) Act, 1963
• 50. Personal Injuries (Emergency Provisions) Act, 1962 51. Unorganised
Workers’ Social Security Act, 2008

31. "Labour" related provisions under Constitution of India Part 3
("Fundamental Rights") and Part 4 ("Directive Principles of State
Policy")
• FUNDAMENTAL RIGHTS
• Right to Freedom Article 19
• : Protection of certain rights regarding freedom of speech, etc.-
• (1) All citizens shall have the right- (c) to form associations or unions;
• Right against Exploitation Article 23
• : Prohibition of traffic in human beings and forced labour.-
• (1) Traffic in human beings and begar and other similar forms of forced
labour are prohibited and any contravention of this provision shall be an
offence punishable in accordance with law.
• Article 24: Prohibition of employment of children in factories, etc.- No
child below the age of fourteen years shall be employed to work in any
factory or mine or engaged in any other hazardous employment.

32. DIRECTIVE PRINCIPLES OF STATE POLICY
• Article 39: Certain principles of policy to be followed by the State.-
• The State shall, in particular, direct its policy towards securing-
• (a) that the citizens, men and women equally, have the right to an adequate
means of livelihood;
• (d) that there is equal pay for equal work for both men and women;
• (e) that the health and strength of workers, men and women, and the tender
age of children are not abused and that citizens are not forced by economic
necessity to enter avocations unsuited to their age or strength;
• (f) that children are given opportunities and facilities to develop in a healthy
manner and in conditions of freedom and dignity and that childhood and youth
are protected against exploitation and against moral and material
abandonment.

33. DIRECTIVE PRINCIPLES OF STATE POLICY
• Article 41: Right to work, to education and to public
assistance in certain cases.-
• The State shall, within the limits of its economic
capacity and development, make effective provision for
securing the right to work, to education and to public
assistance in cases of unemployment, old age, sickness
and disablement, and in other cases of undeserved
want.
• Article 42: Provision for just and humane conditions
of work and maternity relief.-
• The State shall make provision for securing just and
humane conditions of work and for maternity relief.

34. DIRECTIVE PRINCIPLES OF STATE POLICY
• Article 43: Living wage, etc., for workers.-
• The State shall endeavour to secure, by suitable legislation or economic
organisation or in any other way, to all workers, agricultural, industrial or
otherwise, work, a living wage, conditions of work ensuring a decent
standard of life and full enjoyment of leisure and social and cultural
opportunities and, in particular, the State shall endeavour to promote
cottage industries on an individual or co-operative basis in rural areas.
• Article 43-A: Participation of workers in management of industries.-
• The State shall take steps, by suitable legislation or in any other way, to
secure the participation of workers in the management of undertakings,
establishments or other organisations engaged in any industry.